Fair Values of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables present a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the periods indicated:



	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Mortgage Servicing Rights
(dollars in thousands)	Three Months Ended June 30,
	2013			2012
Beginning balance at April 1,	$	1,028		$	—
Total gains or losses (realized/unrealized):
Included in earnings, gross	376			25
Less amortization	(67		)	—
Ending balance at June 30,	$	1,337		$	25

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques



(dollars in thousands)	Fair Value at June 30, 2013		Valuation Techniques	Unobservable Input	Range
Nonrecurring measurements:
Impaired loans, net	$	5,171	Discounted appraisals	Collateral discounts	6.00% - 40.00%
Other real estate owned	30,487		Discounted appraisals	Collateral discounts	6.00% - 40.00%
Mortgage servicing rights	1,337		Discounted cash flows	Prepayment rate	10.00% - 30.00%
Mortgage servicing rights				Discount rate	6.00% - 12.00%

Continuing operations [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Assets and liabilities carried at fair value on a recurring basis at June 30, 2013 for continuing operations are summarized in the following table:



(dollars in thousands)	Total		Level 1		Level 2		Level 3
Assets:
Available-for-sale debt securities:
U.S. government sponsored agencies	$	2,084	$	—	$	2,084	$	—
Residential mortgage-backed securities-GSE	368,983		—		368,983		—
Residential mortgage-backed securities-Private	22,824		—		22,824		—
Commercial mortgage-backed securities-GSE	21,498				21,498
Commercial mortgage-backed securities-Private	9,575		—		9,575		—
Corporate notes	28,446		—		28,446		—
Total available-for-sale debt securities	453,410		—		453,410		—
Mortgage servicing rights	1,337		—		—		1,337
Total assets at fair value from continuing operations	$	454,747	$	—	$	453,410	$	1,337

Assets and liabilities carried at fair value on a recurring basis at December 31, 2012 for continuing operations are summarized in the following table:



(dollars in thousands)	Total		Level 1		Level 2		Level 3
Assets:
Available-for-sale debt securities:
U.S. Treasury and government agencies	$	6,981	$	—	$	6,981	$	—
U.S. government sponsored agencies	22,173		—		22,173		—
States and political subdivisions	6,038		—		6,038		—
Residential mortgage-backed securities-GSE	441,074		—		441,074		—
Residential mortgage-backed securities-Private	22,945		—		22,945		—
Commercial mortgage-backed securities-GSE	23,359		—		23,359		—
Commercial mortgage-backed securities-Private	5,317		—		5,317		—
Corporate notes	36,963		—		36,963		—
Total available-for-sale debt securities	564,850		—		564,850		—
Mortgage servicing rights	726		—		—		726
Total assets at fair value from continuing operations	$	565,576	$	—	$	564,850	$	726

Fair Value Measurements, Nonrecurring

Assets measured at fair value on a nonrecurring basis are included in the following table at June 30, 2013 for continuing operations:



(dollars in thousands)	Total		Level 1		Level 2		Level 3
Impaired loans, net	$	5,171	$	—	$	—	$	5,171
Other real estate owned	30,487		—		—		30,487
Total assets at fair value from continuing operations	$	35,658	$	—	$	—	$	35,658

Assets measured at fair value on a nonrecurring basis are included in the following table at December 31, 2012 for continuing operations:



(dollars in thousands)	Total		Level 1		Level 2		Level 3
Impaired loans, net	$	13,575	$	—	$	—	$	13,575
Other real estate owned	48,480		—		—		48,480
Total assets at fair value from continuing operations	$	62,055	$	—	$	—	$	62,055

Fair Value, by Balance Sheet Grouping

The estimated fair values of financial instruments for continuing operations are as follows at the periods indicated:



	At June 30, 2013
(dollars in thousands)	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial Assets of Continuing Operations:
Cash and cash equivalents	$	88,470	$	88,470	$	88,470	$	—	$	—
Investment securities: Available-for-sale	453,410		453,410		—		453,410		—
Investment securities: Held-to-maturity	154,797		148,745		—		148,745		—
Loans held for sale	4,076		4,076		—		4,076		—
Loans, net	1,164,328		1,134,103		—		—		1,134,103
Accrued interest receivable	5,846		5,846		—		1,945		3,901
Financial Liabilities of Continuing Operations:
Deposits	1,811,485		1,812,134		—		1,812,134		—
Retail repurchase agreements	9,109		9,109		—		9,109		—
Federal Home Loan Bank advances	58,306		62,115		—		62,115		—
Junior subordinated debentures	56,702		21,652		—		—		21,652
Accrued interest payable	2,207		2,207		—		505		1,702



	At December 31, 2012
(dollars in thousands)	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial Assets of Continuing Operations:
Cash and cash equivalents	$	239,610	$	239,610	$	239,610	$	—	$	—
Investment securities: Available-for-sale	564,850		564,850		—		564,850		—
Loans held for sale	6,974		6,974		—		6,974		—
Loans, net	1,147,721		1,140,088		—		—		1,140,088
Accrued interest receivable	6,102		6,102		—		1,812		4,290
Financial Liabilities of Continuing Operations:
Deposits	1,906,988		1,910,927		—		1,910,927		—
Retail repurchase agreements	8,675		8,675		—		8,675		—
Federal Home Loan Bank advances	58,328		62,950		—		62,950		—
Junior subordinated debentures	56,702		18,760		—		—		18,760
Accrued interest payable	2,111		2,111		—		937		1,174

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-Paragraph 32

-Subparagraph a, c(1), c(2), c(3), d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 14

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 19

-Subparagraph a, b, c(1), d(1)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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